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Date Published : Thursday, January 03, 2008
Despite enduring a difficult year in personal finance terms, consumers in Australia confounded expectations by coming out in force over the festive period.
The Age reports that a total of $36.5 billion was spent during the run-up to Christmas, breaking the previous year's record of $33.25 billion and topping the forecasted $34.5 billion.
"Australians enjoy spending, and they have done it again this Christmas," commented Richard Evans, director of the Australian Retailers Association.
"Consumers were comfortable and relaxed about their financial security to the extent that they could spend the money that they did."
The pressure to spend during the holiday period may go some way to explaining why spending outstripped the levels forecasted. However, estimates cited by the newspaper also suggest that post-Christmas spending could be up seven per cent on last year.
Nevertheless, with the Reserve Bank of Australia claiming in October that the average credit card bill was $2,993, it may be that some consumers will choose to tighten their belts sooner rather than later.
Mark Bouris, chairman of Wizard Home Loans, told news.com.au: "2007 has been a tough year for many Australians as they've had to cope with two interest rate increases, the threat of another in early '08 and a significant amount of commentary and speculation regarding what the US subprime crisis means for mortgage holders in Australia.
"It is far easier to strengthen your financial position when goals are set and a decision is made with strong intention."
Australian savings accounts compared and reviewed.
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